RioZim continues to seek other financial backing for 2 800MW Sengwa Power Station
January 24, 2024
Zimbabwe Stock Exchange-listed diversified mining company RioZim said it has been committed to engaging various stakeholders for potential partnership on its 2800 MW coal-fired plant, Sengwa Power Station.
Rudairo Mapuranga
The project which had secured funding from China was left stranded after the Asian country pulled back from financing the thermal power project as part of its efforts to curb future carbon emissions.
“The Company continued its engagements with various stakeholders during the year for potential partnerships on this project and our stakeholders will be informed on any further developments,” RioZim said in a statement.
Plans for the multi-billion dollar Sengwa power plant involve more than doubling the country’s current electricity capacity and will help mitigate the Power crisis as the country’s Power uptake increases due to Mining growth.
Earlier this year, RioZim said it is optimistic about reaching financial closure for its 178 megawatts (WM) solar projects after the group resumed engagements with various potential funding partners.
The solar plants will supply electricity to Rio Zim’s mines namely Renco, Cam and Motor and Dalny.
Power supply has remained a major threat to the Group’s operations and the business has been focusing on backup power generators across the mines albeit at a significantly high operating cost.
The Sengwa coal deposit is situated in North Western Zimbabwe, with proven ore reserves of over 525 million tonnes.
The RioZim power station project is based on a coal resource of 1,3 billion tonnes, capable of generating up to 3 000MW of power, almost above Zimbabwe’s total installed capacity.